Unit 9: Distribution of Wealth and Incomes

What’s in This Chapter? Is there more or less poverty in countries that have higher income inequality? Consider the following hypothetical example. Country A: The poorest income group earns an average of $4,000 per year....

Income Inequality How much income inequality is appropriate? This is a hotly debated topic among economists and politicians. Nearly everyone in industrialized countries agrees that we should have some degree of income...

Advantages of Income Equality Advantages of a system of income equality are 1. Less use of natural resources. There is generally less use of natural resources and less conspicuous consumption as incomes and the standard of...

The Definition of Poverty The poverty thresholds, as determined by the United States Census Bureau, vary by the size of a household and typically increase from year to year. In 2017 it was $12,060 for a household of one person....

The Old Age Survivors and Disability Insurance (Social Security) program The Social Security Program is mostly a retirement program, but it has welfare elements, as well. In addition to providing retirement income for many...

The Difference Between Average and Marginal Tax Rates The United States individual income tax system is a progressive tax system. This means that households with higher incomes pay a higher percentage in tax. Because of the...